General information only. This guide explains how UK lenders usually approach people living in Hong Kong. It is not advice and not an offer of lending. Every lender has its own criteria, and they change often, so speak to a mortgage adviser before making any decision. 閱讀中文版.
The short answer
Living in Hong Kong does not stop you getting a UK mortgage. Hong Kong residents buy UK property every year: homes for a future move, flats for children at university, and buy-to-let investments. What changes is who will lend to you and on what terms.
Most UK high street banks either decline applicants who live overseas or only help existing customers. The market for Hong Kong residents is made up of specialist expat lenders, the international arms of UK banks, some building societies and private banks. They accept income in Hong Kong dollars, but they usually ask for a larger deposit than a UK resident would need, and they look closely at your job, your nationality, your pay package and your UK credit history.
Who can apply from Hong Kong
- British expats living in Hong Kong have the widest choice. A UK connection, such as a previous UK address, a UK bank account or a UK credit history, helps.
- Hong Kong permanent residents and other nationalities can also get UK mortgages, particularly for buy-to-let. Fewer lenders are available, and deposits and minimum incomes can be higher. Some lenders only accept certain nationalities.
- Holders of a British National (Overseas) passport. Lenders do not all treat a BN(O) passport in the same way as British citizenship, so the choice of lender depends on your full situation.
- If you are planning to move to the UK, some lenders will lend before you relocate and others prefer you to be living in the UK first, when different lenders and criteria apply. It is worth planning the timing before you choose a property.
Your Hong Kong dollar income
A UK mortgage is lent and repaid in pounds, so the lender converts your Hong Kong dollar income into sterling and often reduces it, commonly by 10% to 25%, to allow for exchange rate movements. The Hong Kong dollar is linked to the US dollar within a band of 7.75 to 7.85 Hong Kong dollars to the US dollar, which makes the income more predictable, and some lenders treat it more favourably as a result. Your income in pounds still moves with the pound against the US dollar.
Lenders work from your gross income. Many Hong Kong residents work in banking and financial services, where pay often includes:
- Bonuses, usually averaged over one or two years, and some lenders count only half or another proportion.
- Deferred awards and shares, which some lenders count once they have vested and others ignore.
- Housing allowances, counted in full, in part or not at all depending on the lender.
Where income is paid in a foreign currency, changes in exchange rates may affect the amount you need to repay in sterling. For a mortgage on a home you or your family will live in, the lender must also have arrangements to limit that risk and must warn you if movements change what you owe or your payments by more than 20%.
First-time buyers living in Hong Kong
Being a first-time buyer and living abroad at the same time narrows the choice of lender, but it does not rule you out. Some lenders do not accept first-time buyers who live overseas, while others do, often with a larger deposit or a higher minimum income. A strong, steady income and a clear source of deposit matter more than usual.
Two points catch people out:
- Owning a flat in Hong Kong means you are not a first-time buyer, for lenders or for stamp duty. Owning property anywhere in the world counts.
- Buying for a child at university is common, but how you buy matters. Lending for a home a family member will live in, sometimes called a family let, is offered by fewer lenders than a standard buy-to-let, and putting the property in your child's name, or in both your names, changes which lenders and stamp duty rates apply.
Deposit and how much you can borrow
Most lenders for Hong Kong residents lend up to 75% of the property value, so plan for a deposit of at least 25%. Some ask for 30% or more for foreign nationals, first-time buyers, new build flats or high value properties.
For a home you will live in, many lenders use around 4.5 times your income as a guide, after they have converted it into pounds and applied any currency reduction. They also look at your commitments, including any Hong Kong mortgage or rent, so the actual amount offered can be lower. Keep a clear record of where your deposit came from, and allow for the exchange rate and transfer costs when you move it to the UK.
See your own figures. Our expat mortgage calculator gives a guide to how much you could borrow and what it would cost each month in pounds.
Buy-to-let and limited companies
For a buy-to-let mortgage, the loan is based mainly on the rent, which is paid in pounds. Lenders test that the rent covers the interest at a stress rate, usually by 145% for individuals and 125% for limited companies, so buy-to-let has more lenders available to Hong Kong residents than mortgages for your own home. Many lenders still set a minimum personal income.
Some investors buy through a UK limited company, which has different lenders, costs and tax treatment. Rental income from a UK property is usually taxable in the UK even though you live in Hong Kong, and landlords overseas normally register under the Non-Resident Landlord Scheme. Tax depends on your circumstances, so speak to a tax adviser.
If you already own a UK property, you can remortgage it to a new rate or release equity from Hong Kong. Your existing lender may offer you only limited products while you live overseas, so compare the wider market well before your current deal ends. Our guide to remortgaging a UK property while living abroad explains the options.
Stamp duty for Hong Kong residents
In England and Northern Ireland, buyers who are not UK resident pay a 2% surcharge on top of the standard Stamp Duty Land Tax rates. You are usually treated as non-UK resident if you were in the UK for fewer than 183 days in the 12 months before you buy. If you then spend enough time in the UK soon after the purchase, you may be able to claim the surcharge back.
Anyone who already owns a residential property anywhere in the world, including Hong Kong, and is not replacing their main home, also pays a further 5%.
First-time buyer relief can still apply to non-UK residents, with the 2% surcharge added on top. It is only available if every buyer has never owned a home anywhere in the world, you intend to live in the property as your only or main home, and the price is £500,000 or less. Here is how that works for a £400,000 home:
| £400,000 home | First-time buyer who will live in it | Owns a flat in Hong Kong |
|---|---|---|
| Standard or first-time buyer rates | £5,000 | £10,000 |
| 2% non-resident surcharge | £8,000 | £8,000 |
| 5% additional property surcharge | None | £20,000 |
| Total, about | £13,000 | £38,000 |
Scotland and Wales have their own taxes and rates. Your solicitor calculates and confirms the final figure.
Plan your budget. Our stamp duty and buying costs calculator adds up your deposit, stamp duty and fees in one figure, including the non-resident and additional property surcharges.
The documents you will need
Lenders and solicitors must check who you are, where you live and where your money comes from. A typical list for a Hong Kong resident is:
- Passport and Hong Kong identity card
- Proof of your Hong Kong address, such as a recent utility bill or bank statement
- Employment contract, three to six months of payslips and bank statements showing your salary paid in
- Your latest salaries tax Notice of Assessment, and letters confirming any bonus or deferred awards
- For business owners, your Business Registration Certificate, at least two years of accounts and profits tax returns
- Proof of your deposit, showing how it was built up
Documents not in English may need a certified translation. Most of the process can be handled remotely, with electronic signing and video calls. Hong Kong is eight hours ahead of the UK in winter and seven hours ahead in summer.
Before you apply
- Keep a UK footprint. A UK bank account and a UK credit card used and cleared each month help a lender see your UK history.
- Check your basic salary on its own. If the numbers only work with every bonus and award included, the choice of lender narrows quickly.
- Decide whose name the property goes in before you make an offer, as it affects lenders and stamp duty.
- Leave room for the exchange rate. Borrowing at the very top of what you could afford today leaves little margin if the pound strengthens.
- Avoid applying to several lenders yourself. Each application leaves a mark on your credit file. A Decision in Principle from a lender that accepts Hong Kong residents tells you where you stand first.
For more on our service, see our page for expats in Hong Kong.
Talk it through with an adviser
Every lender treats Hong Kong residents differently, so the figures in this guide are a starting point, not an answer. Speak to a specialist UK expat mortgage adviser who will check which lenders suit your nationality, income and plans, and can arrange a Decision in Principle, usually within 24 to 48 hours. The first consultation is free.